whats the truth about tax sales - Posted by need to know

import · February 25, 2005, 3:09pm

Posted by Thierry Louis on March 30, 2005 at 15:34:11:

I just need to understand how it works in new york and new jersey!!!

import · February 25, 2005, 3:09pm

Posted by need to know on February 25, 2005 at 16:09:54:

what kind of things are there to watch out for when looking to purchase at a tax sale? any information about these sales would be greatly appreciated.

import · February 26, 2005, 8:12am

Re: whats the truth about tax sales - Posted by Jimmy

Posted by Jimmy on February 26, 2005 at 09:12:40:

here’s my observations, having attended 20 or so of these auction in TX.

stories about paying pennies on the dollar are massively exaggerated. I’m sure these things happen from time to time, but it is very rare.

There are plenty of bargains on properties where there only a few interested buyers. This includes vacant lots, and houses needing lots of work. In my experience, only builders and contractors bid on the vacant lots. New construction is a major undertaking, and most of us would not be interested.

Houses with major problems also tend to go off at low prices, but that is not surprising. Houses in pretty good share get bid right up to FMV. Again, most investors are not interested in major work, and do not bid. The builders and contractors get these.

I have seen properties get bid way over my view of FMV. I have a couple theories. Sometimes, a property will have a problem that I know about, but is not obvious to others. Sometimes, a neighboring landowner will pay more than necessary to gain control of property next door. Sometimes, people just go crazy in the heat of an auction, and their brains freeze up.

I saw this happen in Reno last year. A 70 year old 7-unit complex was on the auction block. I was willing to go up to 180K or so, based on my understanding of the local market, and the condition of these old units. I was stunned when I got to the courthouse, and there were 100+ people there. The bidding was fierce. deal went off at 395K. It made no sense to me. I learned later that he defaulted, and lost his 39.5K deposit.

import · February 25, 2005, 6:33pm

this will help… - Posted by David Krulac

Posted by David Krulac on February 25, 2005 at 19:33:04:

http://www.creonline.com/legal/wwwboard7/messages/25595.html

import · February 25, 2005, 5:38pm

Re: whats the truth about tax sales - Posted by Bill H

Posted by Bill H on February 25, 2005 at 18:38:45:

Serch the archives of this and every board that you read…there are lots and lots of posts and answers.

In general …it is NOT…a get rich, buy for pennies on the dollar as the infomercial say.

Ypu cna get burned…very severly…read the archived articles and if you have additional question post and we will reply.

Good Luck,
Bill H